A quick question about how to calculate the open/close inventory. Is the open is % of sales or % of the cost of sales in that month?
CIMA Forums
Cash managenet
Hi,
It would be on the cost of sales, if it is given in $. You cannot take a percentage of the sales figures in $ as this incorporates the profit, and inventory is held at the lower of cost and NRV.
Thanks
Sign into reply to this topic.
